In perpetual futures, there is a key mechanism called the funding rate, which is used to balance the price difference between the contract price and the spot price. How is this balance achieved? By the long and short positions paying each other fees.

The specific logic is as follows: the system settles the funding rate every 8 hours. When the funding rate is positive, it indicates that the contract price is high, and the longs need to pay fees to the shorts, which creates selling pressure; conversely, if the funding rate turns negative, the shorts need to pay the longs, which creates buying pressure.

Taking the Perptual Futures of SOL and XRP as an example, both of these cryptocurrencies have considerable trading volume, and the funding rate fluctuates frequently. If you are going long, you need to pay when encountering a positive funding rate; if you are going short, you need to pay during a negative funding rate. Therefore, it's essential to clearly understand the current rate environment before opening a position, as it directly affects your actual costs.